07/17/2007

Vancouver, BC - July 17, 2007 - Plutonic Power Corporation
(PCC-TSX), has authorized its contractor, Peter Kiewit Sons Co. under a
limited notice to proceed, to begin construction of 60 kilometres of
access roads and 11 bridges and related infrastructure in the Toba
Valley, in preparation for ground breaking on the generation facilities
for the $660 million, 196 megawatt East Toba/Montrose Creek run-of-river
projects. The first barge successfully offloaded heavy equipment and
materials at the head of Toba Inlet north of Powell River BC last week,
after a twenty-hour trip across Howe Sound. More than 130 barge trips
will be made during the three-year course of construction.

"Plutonic is extremely excited that work is underway in the Toba Valley.
After a two-year rigorous permitting process we can now turn our
attention from permitting to execution and construction of East
Toba/Montrose," said Donald McInnes, President and CEO of Plutonic Power
Corporation. "The arrival of the first barge of equipment was symbolic
for us as it moves forward our vision of the 1,600 megawatt Green Power
Corridor and our commitment to helping restore BC's self-sufficiency
status."

"The remote nature of the site also creates some unique opportunities
for Plutonic and Kiewit to be creative throughout the construction
process," added McInnes. "In addition to barging equipment and
materials, a 200-man construction camp will be built, as well as an
airstrip and related facilities. Plutonic is also very proud of the
work we have commenced with First Nations that is inclusive of training,
employment and subcontracting opportunities. We also plan to actively
engage and update the community and First Nations during the
construction period to build on the solid relationships and expertise
already in the region. "

A partnership executed between Plutonic and GE Energy Financial Services
will ultimately finance and operate the Toba Montrose Projects. The
$660 million project budget includes the EPC contract ($497 million) and
owners costs, contingencies and interest during construction. Most of
the significant conditions precedent to the implementation of the
partnership have been satisfied except execution by the partners of an
EPC contract with Peter Kiewit Sons Co. which is anticipated by
month-end.

Plutonic Power is an emerging renewable energy producer in British
Columbia. Its proposed 31 development projects have a design capacity of
up to 1,600 MW with the potential to generate approximately 5,000 GWh
per annum of green energy - enough energy to meet the annual energy
needs of over 500,000 homes. These development projects represent the
largest inventory of undeveloped green energy projects in British
Columbia. Included in the 31 projects is the creation of the Green
Power Corridor, a series of non-storage hydroelectric projects in
southwestern BC, which hold the potential to catapult British Columbia
to the forefront of green energy generation in North America. The
completion of the Green Power Corridor would create approximately 4000
person years of employment. For photos of the site progress to date
visit www.plutonic.ca/s/CommunityPhotos.asp

Plutonic is committed to becoming the preeminent supplier of green
energy in British Columbia by working with First Nations, stakeholder
groups and local communities in the development of all its run-of-river
projects. This commitment will help British Columbia realize its goal of
becoming electricity self-sufficient by 2016 and meet demand utilizing
90% clean generation sources.

The TSX Exchange does not accept responsibility for the adequacy or
accuracy of this release. Caution Regarding Forward-Looking Statements -
This news release contains certain forward-looking statements,
including statements regarding the business and anticipated financial
performance of the Company. These statements are subject to a number of
risks and uncertainties. Actual results may differ materially from
results contemplated by the forward-looking statements. When relying on
forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other uncertainties
and should not place undue reliance on such forward-looking statements.
The Company does not undertake to update any forward looking statements,
oral or written, made by itself or on its behalf.

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